Can Patagonias New Partner Fast-Track Its Lithium Ambitions?

Source: Kapitales Research

Highlights:

• Patagonia Lithium Limited (ASX: PL3) has formed a preliminary strategic partnership with Ameerex Corporation to help progress its lithium, niobium and rare earths projects across South America.
• The deal gives Patagonia access to a potential new source of capital as it works toward a Scoping Study and an indicated mineral resource.
• Drilling has resumed at the Formentera project in Argentina, with further testing planned to advance the company toward potential production.

Strategic Deal Adds Fresh Capital Pathway

Patagonia Lithium Limited (ASX: PL3) has taken a step to strengthen funding and development momentum after signing a non-binding strategic partnership with Ameerex Corporation (OTCID: HIRU). The agreement is designed to support Patagonia’s Formentera Lithium Project in Argentina, along with its niobium and rare earths assets in Brazil. At the time of writing, the partnership is not yet a binding investment, but it gives Ameerex the right to assess Patagonia’s assets and prioritise capital deployment into the most promising projects. The move follows Patagonia’s recent $2.68 million capital raise, which management says will help maintain progress while new funding options are explored.

Why This Partnership Matters

Patagonia’s Executive Chairman Phillip Thomas said the agreement provides valuable financial flexibility at a critical development stage. The company is working toward delivering a substantial indicated mineral resource and a Scoping Study, both key milestones for attracting larger institutional investment.

Ameerex brings experience from its existing energy portfolio, including its participation in the Rasberry Unit Field in Texas through the Falcon Caddo Venture joint venture, which holds an estimated 24 million barrels of oil. While Ameerex is traditionally oil and gas focused, the company has also expressed interest in clean energy and battery minerals as part of the global energy transition.

On-the-Ground Progress Continues

Patagonia has returned to its Formentera concession well in Argentina’s Jujuy province after drilling reached a depth of 335 metres before the Christmas break. The company is currently evaluating whether to carry out a packer test before drilling resumes, a step that could help determine brine movement and lithium grades. It controls three key lithium brine assets — Formentera and Cilon in the Salar de Jama in Jujuy province, and the Tomas III project in the Inchahuasi Salar in Salta province. Management has previously stated its ambition to become a lithium producer within two years, driven by strong global demand for batteries and energy storage.

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